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Year-End Report 2018
2018 summary
2
Solid performance despite challenging equity markets
NAV flat, TSR +4 percent, outperforming Swedish stock market by 8 percentage points
Investments in three listed core investments, two new subsidiaries acquired
Strong profit growth in Patricia Industries, Mölnlycke ended 2018 with good organic sales growth
Strong value growth in EQT investments
Balance sheet remains strong, board proposes SEK 13.00 dividend, +8 percent
Several important steps to create long-term value
3
Continued work to further
increase agility,
prepare for potentially
tougher times
Investor issued a
EUR 500 m. 12y-bond at
attractive terms
Structural actions Attractive investments Agility
Strong cash flow creates strategic flexibility
LISTED COREINVESTMENTS
2015-2018
Sources
Net other
LISTED COREINVESTMENTS
Uses
SEK
~63 bn.
4
SEK
~64 bn.
Net debt unchanged, leverage from 7.3 percent to 6.1 percent
We have paid a steadily rising dividend
5
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018p
DPS, SEK
Q4 2018
Q4 2018 summary
7
Adjusted NAV -12%, TSR -8%, SIXRX -14%
Listed Core Investments -15 percent total return
Patricia Industries -3 percent based on estimated market values
Strong value growth in EQT investments +14 percent including effects related to EQT AB
Mölnlycke
> Organic sales growth +6 percent in constant currency
> Wound Care grew +8 percent, Surgical +4 percent
> All major geographies reported healthy growth
> Profitability impacted by increased sales and
marketing costs, negative currency effects
> EUR 100 m. distributed to Patricia Industries
> Acquisition of key component manufacturer M&J
Airlaid after the quarter, also strengthening R&D
8
Q4 2018
A provider of advanced products for treatment and prevention of wounds and single-use surgical solutions
0
5
10
15
20
25
30
35
0
200
400
600
800
1 000
1 200
1 400
1 600
2014 2015 2016 2017 2018
%EUR m.
Sales EBITDA, % EBITA, %
Permobil
> Organic sales growth -2 percent in constant
currency
> Power Products declined, Seating & Positioning
and Manual grew
> Profitability improved significantly driven by cost-
cutting initiatives
> SEK 600 m. distribution, of which SEK 581 m. to
Patricia Industries
9
Q4 2018
A provider of advanced mobility and seating rehab solutions
0
5
10
15
20
25
0
1 000
2 000
3 000
4 000
5 000
2014 2015 2016 2017 2018
%SEK m.
Sales EBITDA, % EBITA, %
Piab
> Organic sales growth +5 percent in constant
currency
> Europe the key growth driver, Americas declined
> EBITA margin increase due to operating leverage
> Process to appoint new CEO ongoing
10
Q4 2018
A provider of gripping and moving solutions for automated manufacturing and logistics processes
0
5
10
15
20
25
30
35
0
50
100
150
200
250
300
350
400
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
%SEK m.
Sales EBITDA, % EBITA, %
Laborie
> Organic sales growth +6 percent in constant
currency
> Urology key growth driver
> Profitability improved, continued focus on integration
of Cogentix, restructuring of European business
11
Q4 2018
A provider of innovative capital equipment and consumables for the diagnosis and treatment of urologic and gastrointestinal (GI) disorders
-15
-10
-5
0
5
10
15
20
25
30
0
10
20
30
40
50
60
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
%USD m.
Sales EBITDA, % EBITA, %
Sarnova
> Organic sales growth +5 percent in constant
currency
> Growth driven by Acute Care
> Continued investments in additional sales
resources, new products, warehouse
optimization and online
> Continued expansion of private label Curaplex
offering
12
Q4 2018
A specialty distributor of healthcare products in the U.S.
0
2
4
6
8
10
12
14
0
20
40
60
80
100
120
140
160
180
Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
%USD m.
Sales EBITDA, % EBITA, %
BraunAbility
> Organic sales growth +17 percent in constant
currency
> EBITA margin impacted by continued
investments in supply chain optimization
> USD 145 m. distribution, of which USD 138 m.
to Patricia Industries
13
Q4 2018
A manufacturer of wheelchair accessible vehicles and wheelchair lifts
0
2
4
6
8
10
0
100
200
300
400
500
600
700
2014 2015 2016 2017 2018
%USD m.
Sales EBITDA, % EBITA, %
Aleris
> Divestiture of Aleris Care completed January 2019
> Significant restructuring costs and provisions for
unprofitable contracts in the quarter
> Adjusted for restructuring costs related to Aleris
Care, EBITDA SEK 2 m., EBITA SEK -56 m.
– Results affected by significant provisions for
unprofitable contracts
14
Q4 2018
A provider of healthcare services in Scandinavia
-10
-5
0
5
10
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q4 17 Q4 18
%SEK m.
Sales EBITDA, % EBITA, %
Three Scandinavia
> Subscription base +37,000
> Service revenue -1 percent, negatively impacted by
Swedish VAT ruling. Underlying service revenue flat
> Underlying EBITDA SEK 772 m., +1 percent
15
Q4 2018
A provider of mobile voice and broadband services in Sweden and Denmark
0
5
10
15
20
25
30
35
0
2 000
4 000
6 000
8 000
10 000
12 000
2014 2015 2016 2017 2018
%SEK m.
Sales EBITDA reported, % EBITDA adjusted*, %
*) EBITDA excluding charges related to VAT rulings and IFRS15 impact.
EQT
> +14 percent value change in constant currency
– Positive impact from steps taken by EQT AB to
simplify ownership structure as part of ongoing
review to strengthen its balance sheet
> SEK 20.8 bn. value of our EQT investments
> SEK 16.5 bn. in outstanding commitment to EQT
16
Q4 2018
EQT AB EQT Equity EQT Infrastructure EQT Credit EQT Midmarket EQT Ventures EQT Real Estate
0
5
10
15
20
25
30
35
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2014 2015 2016 2017 2018
%SEK m.
Net cash flow Value change (constant currency)
2019 and beyond
”We create value
for people and society
by building
strong and sustainable
businesses”
Operating priorities
Generating an attractive total shareholder return
Grow net asset value Operate efficientlyPay a steadily rising dividend
19
We focus on the long-term
20
Average annual total return
0
2
4
6
8
10
12
14
16
18
5 years 10 years 20 years
%
INVE B SIXRX
Return
requirement
21
Year-End Report 2018Financials, Helena Saxon, CFO
Financial highlights
> Adjusted Net Asset Value amounted to
SEK 372 bn., a decrease of 12 percent
23
Q4 2018
0
100
200
300
400
500
181716151311 141009 12080499 0502 07060098 0301
SEK bn.
328328
372372
Reported NAV
Adjusted NAV
Listed Core Investments
24
Q4 2018
-10 000
-9 000
-8 000
-7 000
-6 000
-5 000
-4 000
-3 000
-2 000
-1 000
0
1 000
2 000
3 000
4 000
5 000
SEK m.
Atlas
Copco
ABBNasdaq Ericsson HusqvarnaElectrolux SobiEpiroc SEBWärtsiläAstra
Zeneca
Saab
> SEK 271 bn., 69% of total adjusted assets
> Total Contribution to NAV SEK -47 bn.
> Listed Core TSR was -14.9% vs. SIXRX -14.1%
TSR % -3 -3 -3 -13 -4 -18 -16 -27 -14 -26 -20 -18
Patricia Industries
25
Estimated market value development Q4 2018 vs Q3 2018
3 015
536974
119 391
LaborieTotal
NAV Sep
30, 2018
94
Vectura AlerisPermobil BraunAbility
-1 465
3
-1 186
-620
Total
NAV Dec
31, 2018
115 476
Patricia
Cash
-682
-124
Mölnlycke
-4 455
Financial
Investments
Other subs
Distributions
Estimated market value change
Major drivers of estimated market value Q4 2018
26
SEK +1.0 bn. Higher profit
Company
Est. market value
change Q4 2018 vs.
Q3 2018
Comment
SEK -1.5 bn.Lower multiples,
SEK 1.2 bn. distribution to Patricia Industries
SEK -1.2 bn.Lower multiples,
negative impact from Swedish VAT ruling
SEK -4.5 bn.Lower multiples,
SEK 1.0 bn. distribution to Patricia Industries
SEK +0.1 bn.Higher profit,
SEK 0.6 bn. distribution to Patricia Industries
Financial Investments
> Realization of portfolio continues
> Holdings in Spigit and Innovative Micro Technology
fully exited
27
Q4 2018
3 830 m.
Atlas Antibodies
Other755 m.
CDP Holding
413 m.
422 m.
Acquia
1 497 m.
NS Focus
360 m.
Madrague
SEK 7 277 m.
2% of total adjusted assets
Financial position as of December 31, 2018
> Leverage 6.1% (3.5%)
> Net debt SEK 21.4 bn.
> Gross cash SEK 11.3 bn.
> Average maturity of the debt portfolio 10.3 years
28
Current rating
Standard & Poor’s AA-
Moody’s Aa3
”We create value
for people and society
by building
strong and sustainable
businesses”
Financial calendar & Contact details
Event Date
Interim Management Statement, January – March 2019 April 24, 2019
Interim Report, January – June 2019 July 17, 2019
Interim Management Statement January-September 2019 October 18, 2019
30
Contact details
Viveka Hirdman-Ryrberg +46 70 550 3500
Head of Corporate Communication and Sustainability [email protected]
Magnus Dalhammar +46 73 524 2130
Head of Investor Relations [email protected]
